Scotgold says it is currently looking at finance options as it looks to put its Cononish gold and silver mine into development later this year.

The Cononish development, within Loch Lomond and the Trossachs National Park, secured planning approval last year on appeal after being refused planning permission in 2010.

Estimates from tests at the Cononish site break down to 163,000 ounces of gold and 596,000 ounces of silver, based on a 3.5 gram of gold per tonne cut-off, Scotgold said.

Scotgold Resources, a listed Australian-based mining firm, said it expects to mine at an annual rate of 72,000 tonnes at Cononish, which it estimates will produce between 20,000 and 25,000 ounces of gold and up to 85,000 ounces of silver a year.

The revenues generated will be used to fund further developments.

In first-half results posted today, Scotgold reported losses of £723,203, up from £566,026 a year earlier, despite a fall in exploration expenditure, which was £659,407 against £903,721 at the same point last year.

However there was a huge surge in Scotgold's share capital value, rising from AUSD 15.8 million listed at December 31, 2011 to AUSD 193.8 million by June 30, 2012.

Scotgold recently announced tests from its Sron Garbh exploration programme, five kilometres from Cononish, has potential for an extensive mineral system, having shown positive results for gold, platinum, copper, zinc and cobalt.

Tests showed similar mineralisation readings to major deposit finds in Aguablanca in Spain and certain parts of the Sudbury mines in Ontario, Canada.Scotgold said in its half-year results it expects a project development study for the site, being compiled by mining consultancy AMC, should be complete within the next month.

The mining firm said it was also looking at other development opportunities at the Beinn Udlaidh and Auch project areas.

At present, 85 per cent of Scotgold's 3,200 square kilometre Crown-licensed exploration land lies outwith the Loch Lomond and the Trossachs National Park.